Virgin Orbit seeks bankruptcy protection

Richard Branson’s Virgin Orbit is filing for Chapter 11 bankruptcy protection after a failed mission this year and increasing difficulty in raising funding for future missions.

The company laid off most of its staff on Friday and told the U.S. Bankruptcy Court for the District of Delaware in a filing Tuesday that it was looking to sell its assets.

Virgin Orbit said that it has secured $31.6 million in debtorin-possession financing from Branson’s Virgin Investments

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Virgin Orbit CEO Dan Hart said that once the financing is approved by the bankruptcy court, the funds are expected to provide Virgin Orbit with the necessary liquidity to continue operating as it attempts to sell the company.

“While we have taken great efforts to address our financial position and secure additional financing, we ultimately must do what is best for the business,” Hart said.

The Long Beach, Calif., company said in its bankruptcy filing that it has between 200 and 999 estimated creditors. It had approximately $243 million in total assets and $153.5 million in total liabilities as of Sept. 30, according to a regulatory filing.

Last week Virgin Orbit said that it was cutting 675 jobs, about 85% of its workforce. Shortly before the announcement, the company said that it was pausing all operations amid reports of possible job cuts. At the time Virgin Orbit confirmed that it was putting all work on hold, but didn’t say for how long.

In January, a mission by Virgin Orbit to launch the first satellites into orbit from Europe failed after a rocket’s upper stage prematurely shut down.